GURUFOCUS.COM » STOCK LIST » USA » NYSE » Pinterest Inc (NYSE:PINS) » Definitions » Beneish M-Score
Switch to:

Pinterest Beneish M-Score

: -1.44 (As of Today)
View and export this data going back to 2019. Start your Free Trial

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.44 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Pinterest's Beneish M-Score or its related term are showing as below:

PINS' s Beneish M-Score Range Over the Past 10 Years
Min: -5.48   Med: -2.39   Max: -1.44
Current: -1.44

During the past 5 years, the highest Beneish M-Score of Pinterest was -1.44. The lowest was -5.48. And the median was -2.39.


Pinterest Beneish M-Score Historical Data

The historical data trend for Pinterest's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pinterest Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
- - -4.95 -2.30 -2.32

Pinterest Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.10 -2.45 -2.32 -2.19 -1.44

Competitive Comparison

For the Internet Content & Information subindustry, Pinterest's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Pinterest Beneish M-Score Distribution

For the Interactive Media industry and Communication Services sector, Pinterest's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Pinterest's Beneish M-Score falls into.



Pinterest Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pinterest for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9022+0.528 * 0.9859+0.404 * 4.914+0.892 * 1.2109+0.115 * 1.39
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9494+4.679 * -0.1328-0.327 * 1.1821
=-1.44

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $511 Mil.
Revenue was 665.93 + 574.885 + 846.655 + 632.932 = $2,720 Mil.
Gross Profit was 501.034 + 428.815 + 705.407 + 506.149 = $2,141 Mil.
Total Current Assets was $3,246 Mil.
Total Assets was $3,694 Mil.
Property, Plant and Equipment(Net PPE) was $284 Mil.
Depreciation, Depletion and Amortization(DDA) was $30 Mil.
Selling, General, & Admin. Expense(SGA) was $1,046 Mil.
Total Current Liabilities was $351 Mil.
Long-Term Debt & Capital Lease Obligation was $193 Mil.
Net Income was -43.076 + -5.281 + 174.699 + 93.996 = $220 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 120.068 + 213.389 + 211.772 + 165.742 = $711 Mil.
Total Receivables was $468 Mil.
Revenue was 613.21 + 485.23 + 705.617 + 442.616 = $2,247 Mil.
Gross Profit was 485.391 + 351.76 + 576.594 + 329.772 = $1,744 Mil.
Total Current Assets was $2,664 Mil.
Total Assets was $2,886 Mil.
Property, Plant and Equipment(Net PPE) was $196 Mil.
Depreciation, Depletion and Amortization(DDA) was $30 Mil.
Selling, General, & Admin. Expense(SGA) was $910 Mil.
Total Current Liabilities was $237 Mil.
Long-Term Debt & Capital Lease Obligation was $122 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(511.468 / 2720.402) / (468.181 / 2246.673)
=0.18801192 / 0.20838858
=0.9022

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1743.517 / 2246.673) / (2141.405 / 2720.402)
=0.77604395 / 0.78716491
=0.9859

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (3246.07 + 284.399) / 3694.032) / (1 - (2663.711 + 195.934) / 2885.646)
=0.04427763 / 0.00901046
=4.914

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=2720.402 / 2246.673
=1.2109

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(30.294 / (30.294 + 195.934)) / (30.318 / (30.318 + 284.399))
=0.13390915 / 0.09633417
=1.39

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1045.817 / 2720.402) / (909.755 / 2246.673)
=0.38443473 / 0.40493432
=0.9494

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((192.543 + 350.855) / 3694.032) / ((121.632 + 237.449) / 2885.646)
=0.1471016 / 0.12443695
=1.1821

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(220.338 - 0 - 710.971) / 3694.032
=-0.1328

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Pinterest has a M-score of -1.44 signals that the company is likely to be a manipulator.


Pinterest Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Pinterest's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Pinterest Business Description

Pinterest logo
Traded in Other Exchanges
Address
505 Brannan Street, San Francisco, CA, USA, 94107
Pinterest is an online product and idea discovery platform that helps users gather ideas on everything from recipes to cook to destinations to travel to. Founded in 2010, the platform consists of a largely female audience, at roughly two thirds of its more than 365 million monthly active users. The company generates revenue by selling digital ads and is now rolling out more in-platform e-commerce features.
Executives
Acosta Andrea officer: Chief Accounting Officer C/O BIOMARIN PHARMACEUTICAL INC. 770 LINDARO ST SAN RAFAEL CA 94901
Gavini Naveen officer: SVP, Products 505 BRANNAN ST. SAN FRANCISCO CA 94107
Coleman Salaam director 505 BRANNAN ST. SAN FRANCISCO CA 94701
Wishom Andrea M director 651 BRANNAN ST. SAN FRANCISCO CA 94107
Reynolds Fredric G director CBS CORPORATION 51 WEST 52ND STREET NEW YORK NY 10019
Kilgore Leslie J director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Wilson L Michelle director PO BOX 81226 SEATTLE WA 98108-1226
Levine Jeremy S. director C/O BESSEMER VENTURE PARTNERS 1865 PALMER AVENUE LARCHMONT NY 10538
Rajaram Gokul director 301 CONGRESS AVENUE SUITE 700 AUSTIN TX 78701
Jordan Jeffrey D director 2865 SAND HILL ROAD #101 MENLO PARK CA 94025
Silbermann Benjamin director, 10 percent owner, officer: Chairman, President, CEO, Co-F 505 BRANNAN STREET SAN FRANCISCO CA 94107
Sharp Evan director, officer: Co-Founder & Chief Design & Cr 505 BRANNAN STREET SAN FRANCISCO CA 94107
Yang Tseli Lily officer: Chief Accounting Officer C/O MEDIVATION, INC. 525 MARKET ST., 36TH FLOOR SAN FRANCISCO CA 94105
Flores Christine officer: General Counsel 505 BRANNAN STREET SAN FRANCISCO CA 94107
Brougher Francoise officer: Chief Operating Officer 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103

Pinterest Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)